American Shared Hospital Services Receives Firm Financing Commitment for the Proton Therapy System It Will Supply to MD Anderson Cancer Center Orlando

AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS), a leading provider
of turnkey technology solutions for advanced radiosurgical and radiation
therapy services, announced today that it has received a firm financing
commitment for the MEVION S250™ Proton Therapy System AMS will supply
for the $25 million proton therapy center now under construction at MD
Anderson Cancer Center Orlando.

MD Anderson Orlando's new facility, the first proton center in Central
Florida, is expected to begin treating patients in early 2014.

AMS Chairman and Chief Executive Officer Ernest A. Bates, M.D., said,
"Following the announcement in June of FDA 510(k) clearance for the
MEVION S250, our receipt of a firm financing commitment for the proton
device we will supply to the new center in Orlando is the next important
step in AMS' long-term strategy to develop proton projects as rapidly as
possible, even as we continue growing our Gamma Knife business. The
financing is similar to the structure we have used for many years to
finance our Gamma Knife projects. We expect the MD Anderson Cancer
Center Orlando to be the model for additional proton centers we are
developing. We are pleased to play a critical role in making this
exciting cancer therapy available at an affordable price." AMS owns
approximately 1% of Mevion Medical Systems, developer of the MEVION
S250, and in addition to Orlando is developing proton therapy centers in
Boston and Long Beach, California which are expected to employ the
Mevion device. AMS also is developing a two room proton therapy center
in Dayton, Ohio.

"By bringing this technology here to Central Florida, we are making this
revolutionary cancer treatment available to so many more individuals,"
said Mark Roh, M.D, President of MD Anderson Cancer Center Orlando.
"Proton Therapy is the cutting edge of cancer fighting technology and
now we’ll have it right here in Orlando."

About Proton Therapy

Proton beam radiation therapy accurately delivers targeted radiation
doses with complete proton energy absorption at predictable tissue
depth, thus allowing precise radiation delivery adjacent to critical
structures and lower radiation doses to healthy structures. Proton
therapy, because it can so precisely target tumors, has proven very
effective at treating specific cancers and patients report fewer side
effects. MD Anderson Orlando's proton therapy center will treat cancers
of the brain, spine, lung and prostrate as well as pediatric cancers.
Combining the elements of a superconducting synchrocyclotron mounted on
a gantry with accelerator technology that has proven to be reliable and
simple for the user, the MEVION S250 significantly reduces the cost,
size and complexity of proton technology, and promises to make this
innovative therapy accessible, affordable and practical.

About MD Anderson Cancer Center Orlando

MD Anderson Cancer Center Orlando, part of Orlando Health, is affiliated
with The University of Texas MD Anderson Cancer Center in Houston. U.S.
News & World Report recently ranked MD Anderson Cancer Center as the top
cancer treatment center in the U.S. and has ranked it as one of the top
two cancer centers for the past 13 years. Orlando Health, a 1,882-bed
community-owned, Florida not-for-profit organization established in
1918, annually serves nearly 2 million Central Florida residents and
more than 4,500 international patients. More information is available at www.mdacco.com.

About AMS

American Shared Hospital Services provides turnkey technology solutions
for advanced radiosurgical and radiation therapy services. AMS is the
world leader in providing Gamma Knife radiosurgery equipment, a
non-invasive treatment for malignant and benign brain tumors, vascular
malformations and trigeminal neuralgia (facial pain). The Company also
offers the latest IGRT and IMRT systems, as well as its proprietary
Operating Room for the 21st Century SM concept. AMS owns a
preferred stock investment in Mevion Medical Systems, Inc., developer of
the compact MEVION S250 Proton Therapy System.

Safe Harbor Statement

This press release may be deemed to contain certain forward-looking
statements with respect to the financial condition, results of
operations and future plans of American Shared Hospital Services, which
involve risks and uncertainties including, but not limited to, the risks
of the Gamma Knife and radiation therapy businesses, the risks of
developing The Operating Room for the 21st Century program, and the
risks of investing in a development-stage company, Mevion Medical
Systems, Inc., without a proven product.Further information on
potential factors that could affect the financial condition, results of
operations and future plans of American Shared Hospital Services is
included in the filings of the Company with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for the
year endedDecember 31, 2011, the Quarterly Report on form 10-Q
for the quarter ended March 31, 2012, the Quarterly Reports on Form 10-Q
and 10-Q/A for the quarter ended June 30, 2012, and the definitive Proxy
Statement for the Annual Meeting of Shareholders held on June 7, 2012.